Lincoln to Penetrate Chinese Market

Last Thursday, Ford Motor Co. stated that it would sell to China five U.S.-Lincoln models by the second quarter of the succeeding year, giving new information of its plans to sell its high-end cars to the Chinese market that correlates luxury with vehicles that are made in Germany

Automaker, Dearborn, Mich., stated that it was able to come up with 60 dealerships in different cities for a brand, which lacks a formal presence here. Long-term, ford wishes to see its premiere brand, Lincoln, compete with the likes of Audi, BMW, AG, and Mercedes-Benz in China in the next couple of years. Ford Chief Executive said on Thursday, prior to the biggest carshow in China for the year, that “Clearly over time as we sell more and more Lincolns here we will gradually localize them,”.

The first models that will be shipped to China this fall will be the MKZ midsize sedan, which is considered as a strong competitor to German made cars such as the Audi A4 and Mercedes C-Class. They will also include the MKC, which is a small sport-utility vehicle. A midsize SUV, a large sedan and a version of the brand’s big Navigator SUV will follow.

Despite such valiant effort by Lincoln however, experts are quick to suggest that it’s introduction in the Chinese market will not pose as an immediate threat to top brands. According to Klaus Paur, global head of automotive at research firm Ipsos, that imported vehicles in China are subject to taxes and duties that can increase sticker prices or crimp profits.

Johan De Nysschen, chief executive of Nissan Motor Co.’s Infiniti, said in an interview, “If you want to get on premium buyers’ radar screen you need critical mass in terms of on-the-road presence, and that requires localization,”. He also added that German brands such as Volkswagen AG’s Audi, BMW and Daimler AG’s Mercedes-Benz make much of what they sell in China domestically through joint ventures with local automakers. according to data from the companies and an estimate from management-consulting firm Strategy&, these giants make up for around roughly over 66% of the 1.6 million luxury cars sold last year in China.